Can Sunoco take notes in payment of any Indebtedness related to the Aplus Guaranty?

According to Aplus's 2024 Franchise Disclosure Document, Sunoco has the right to accept notes or other obligations as payment for any Indebtedness related to the Aplus Guaranty. Specifically, Sunoco can take checks, notes, or other obligations, whether secured or unsecured, in any amount, purportedly in payment of the whole or any part of any Indebtedness. This gives Sunoco considerable latitude in how they collect debts from franchisees or their guarantors.

This provision is part of a broader set of rights Sunoco retains regarding the Indebtedness. Sunoco can renew, compromise, extend, accelerate, or otherwise change the payment terms of the Indebtedness, including adjusting interest rates with the debtor's consent. They can also handle any security related to the debt, such as modifying, releasing, or exchanging it, or choosing not to perfect or act on any security. Sunoco can also file or refrain from filing claims in bankruptcy proceedings involving the debtor or any other guarantor.

For a prospective Aplus franchisee, this means that if a guarantor is involved, Sunoco has significant power in managing the debt and can accept various forms of payment, including notes. The guarantor also waives certain rights, such as requiring Sunoco to proceed against the debtor first or to pursue other remedies. This arrangement provides Sunoco with flexibility in recovering Indebtedness and places a considerable obligation on the guarantor to ensure the debt is satisfied.